The commodity market is easily accessible to all and one of the largest markets in the world. However, amongest the slew of millions of investors, there are only few that are truly successful. The traders in commodity fail for the very same reasons that investors overlook in other trades. The principles and the concepts across all trades remain the same, what changes is the technique and strategy.
Many traders borrow far too much capital from the market in the name of leveraging that leaves the investor with little or no option to make small low-risk mistakes. Sometimes, the greed gets better of them and they take far more risk than they can handle. Here are some potential hazards that can impact successful trading in commodity trading market. Disregarding the importance of discipline Trading decisions are not to be controlled by emotions at any given time. This is the biggest error of judgement any trader makes. A successful trader is the one that has large gains in his kitty while sustaining few small losses. When the trader faces huge losses, it can be emotionally taxing and can entice them into taking hasty decisions forcing them to lose faith in their assessment. When you try to beat the market and give in to fear or greed, you are virtually digging your own proverbial grave. A well constructed plan that is dictated by logic and not be emotions will always help you sail through even the toughest situations. No clear plan of action No matter where you are investing, but entering without a clear plan of action can be suicidal. It can never be stressed enough what the true importance of planning is, especially in case of investments. A successful trader will always work within his documented plan of action while taking risk management into account at every step. His return on investment is articulately defined at every step of the way. There are many pitfalls that you can avoid by simply adhering to your strategic trade plan. To have no plan is nothing less than selling yourself short when it comes to prospective accomplishments in the commodity trading in India. A successful trader will try to speculate unlikely events and will have a contingency plan in place, should such a thing happen. You can keep yourself ahead of other traders by just being more informed and by evolving with the changing market.
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Each and every person wants to earn extra income apart from their regular income. Many of them choose to undertake part time assignments and many choose in making investment in the stock market to earn profit out of it.
Now a day investing in shares of any of the company has become easy with the help of online share trading. But it is very important to attain full fleshed knowledge with regard to pros and cons of online share trading before investing your hard earned money. Your investment could be proving to be lucrative if invested wisely. Many of the investors got fascinated by reading the offer documents of the company issuing shares and then because of which most online investors and traders go broke. Therefore, we will help you out in overcoming this flaw. It is very important to keep in mind few of the points before investing in any of the company. As with the help of online share trading you can invest your money with just a click but that click should be backed by appropriate, reasonable and wise approach. So, here are few points which you should keep in mind : 1. Past history of the company : It is very important to read about the past history and performance of the company. So that you will be able to allocate yours invest plan in the best possible manner. 2. Future plans of the company : It is also very important to understand the future plans of the company. Where the company is going to allocate the fund collected? What will be the return on invest and many other aspects too? 3. Technical Analysis : It should also be a matter of fact what type of technology the company is using. If the technology is out dated, then it will not benefit in the long run and then the sustainability of the organization will be in distress and that will also affect its stakeholders. 4. Risk Management : What all initiative an organization is taking with respect to managing risk. Will it be able to sustain in the arena of distress? These all are the various points which one should remember while investing in shares of any company through online share trading. Generally, investors ignore it which leads them to go broke. So keep in mind before making investment and be a wise investor. |
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September 2017
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